Correlation Between Harboes Bryggeri and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Harboes Bryggeri and Carlsberg at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Harboes Bryggeri and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harboes Bryggeri AS and Carlsberg AS, you can compare the effects of market volatilities on Harboes Bryggeri and Carlsberg and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Harboes Bryggeri with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harboes Bryggeri and Carlsberg.
Diversification Opportunities for Harboes Bryggeri and Carlsberg
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harboes and Carlsberg is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Harboes Bryggeri AS and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Harboes Bryggeri is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Harboes Bryggeri AS are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Harboes Bryggeri i.e., Harboes Bryggeri and Carlsberg go up and down completely randomly.
Pair Corralation between Harboes Bryggeri and Carlsberg
Assuming the 90 days trading horizon Harboes Bryggeri AS is expected to generate 1.64 times more return on investment than Carlsberg. However, Harboes Bryggeri is 1.64 times more volatile than Carlsberg AS. It trades about 0.18 of its potential returns per unit of risk. Carlsberg AS is currently generating about -0.16 per unit of risk. If you would invest 15,150 in Harboes Bryggeri AS on September 1, 2024 and sell it today you would earn a total of 2,100 from holding Harboes Bryggeri AS or generate 13.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Harboes Bryggeri AS vs. Carlsberg AS
Performance |
| Timeline |
| Harboes Bryggeri |
| Carlsberg AS |
Harboes Bryggeri and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harboes Bryggeri and Carlsberg
The main advantage of trading using opposite Harboes Bryggeri and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harboes Bryggeri position performs unexpectedly, Carlsberg can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Carlsberg will offset losses from the drop in Carlsberg's long position.| Harboes Bryggeri vs. Royal Unibrew AS | Harboes Bryggeri vs. Matas AS | Harboes Bryggeri vs. Nnit AS | Harboes Bryggeri vs. DFDS AS |
| Carlsberg vs. AP Mller | Carlsberg vs. ROCKWOOL International AS | Carlsberg vs. Royal Unibrew AS | Carlsberg vs. Tryg AS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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